Business Task Force Streamlining Initiative -- Final Report

BUSINESS TASK FORCE
STREAMLINING INITIATIVE

Final Report

July 29, 1999

I.	INTRODUCTION
II.	BUSINESS TASK FORCE ACCOMPLISHMENTS
III.	BUSINESS TASK FORCE FUTURE: MANDATE AND MEMBERSHIP
IV.	STREAMLINING PROJECT UPDATES
V.	INDUSTRY PROPOSALS
VI.	LEGISLATION
VII.	CONCLUSION
	APPENDIX A – LIST OF MEMBERS
	APPENDIX B – PROJECT UPDATES

I. Introduction

This is the Final Report of the Business Task Force established in May 1998 by the Honourable Joy K. MacPhail, Minister of Finance and Corporate Relations. The Task Force has had a one year mandate to reduce the cost of doing business in British Columbia and to cut red tape.

The 16-member Task Force, chaired by the Minister, includes representatives from business, labour and government. Appendix A contains a list of Task Force members. The Task Force has issued three quarterly reports in accordance with its Terms of Reference. These reports are available on the Internet (www.streamline.gov.bc.ca) and in hard copy from the Ministry of Finance and Corporate Relations Communications Branch (250-387-3347). This is the Business Task Force’s fourth and final quarterly report.

The three earlier reports described activities and progress in each of the following three activity areas:

Streamlining Projects: a set of projects designed to coordinate and focus activity in a number of priority regulatory areas, such as the Contaminated Sites Review and other environmental administration issues, Forests Administration, the Liquor Policy Review, and One Stop Business Registration (BC Business Connects). The status of these projects is provided in Appendix B.

Industry Proposals: the identification and monitoring of 132 unique high priority red tape cutting proposals that were suggested during consultation with the business community. A description of the core red tape cutting proposals and their status is available in the Internet at www.streamline.gov.bc.ca.
Streamlining/Housekeeping Legislation: legislation proposed to reduce the cost of doing business or to make “housekeeping” changes required to maintain provincial legislation in good order.

This Final Report describes the progress and accomplishments of the Business Task Force over the past year, and makes recommendations for its future mandate and membership.

II. Business Task Force Accomplishments

In carrying out its mandate, the Business Task Force reports the following achievements:

Voice for the Business Community - Business Consultation

The Business Task Force created and served as a new, visible communications channel between the business community and government. This channel provides an organized way for the business community to suggest ways to reduce red tape and the cost of regulation and also for the government to consult with business. The channel will continue to be open at all times. Suggestions may be sent to the Chair, Business Task Force:

by email to streamline@gems9.gov.bc.ca,
by fax to 250-387-9099, or
by mail Room 109 – 617 Government Street, P.O. Box 9417 Stn. Prov. Gov. Victoria, BC, V8W 9V1.

In addition, the Business Task Force recommends that its successor should reach out to the business community again in the Fall of 1999 to seek additional issues and specific feedback about progress on the issues that have been raised so far.

Major Policy Impact – Regulatory Impact Statement

The government adopted the Business Task Force recommendations¹ for an instrument (which the Task Force called a Business Lens) that ensures government decisions are made with full information about the implications of proposed regulatory policy, including the implications for business.

These recommendations were implemented in the Regulatory Impact Statement Act (RISA) (www.legis.gov.bc.ca) which received Royal Assent and has been in force since June 29, 1999. RISA requires the government to implement policies and procedures respecting the preparation and publication of regulatory impact. The Regulatory Impact Statement Policies and Procedures (RIS Policy) have been in effect since RISA was introduced on June 24, 1999 and are posted on the Streamlining Web site (www.streamline.gov.bc.ca).

The application of the RIS Policy is broader than similar initiatives in several other jurisdictions. The RIS Policy applies to legislation, regulations and administrative policy while most other jurisdictions with similar initiatives confine the application to regulations made under the relevant Regulations Act. The policy applies to all government ministries and to all public bodies with the authority to make or recommend regulatory policy decisions. This includes entities like the Workers Compensation Board, the Insurance Corporation of British Columbia and self-regulatory organizations.

The Business Task Force supports this legislation and the change of name from Business Lens to Regulatory Impact Statement. The Business Task Force agrees that this more accurately reflects the intent of the instrument, which is to make decision-making more transparent and accountable by disclosing:

the policy’s objectives,
how consultation has been done,
information about alternative ways to achieve the objectives, and
analysis of implications that includes, but is not limited to implications for business.

As of July 7, 1999 Regulatory Impact Statements have been made public for the following legislation introduced in the Spring 1999 Session of Legislative Assembly:

Bill 73 – Private Post-Secondary Education Amendment Act, 1999.
Bill 77 – Agri-Food Choice and Quality Act
Bill 78 – Motor Vehicle Statutes Amendment Act, 1999
Bill 83 – Food Safety Act
Bill 88 – Local Government Statutes Amendment Act, 1999
Bill 91 – Unclaimed Property Act.

The Regulatory Impact Statements are posted or linked to the Streamlining Web Site (www.streamline.gov.bc.ca).

Streamlining Initiatives

The Business Task Force has initiated or endorsed the following streamlining initiatives:

Oil and Gas Streamlining
Right to Mine
Forest Action Plan
Establishment of the Business Task Force
Business Paper Reduction Act
1998 Forest Practices Code Amendments
High Tech Employment Standards Strategy
Creation of Tourism BC
One Stop Business Registration and other BC Business Connects Initiatives
Reduction in Crown Land Application Backlog
Mushroom Composting Regulation
Liquor Policy Changes
Environmental Assessment Review
Contaminated Sites Review
Environmental “Depermitting”
Food Safety & Food Quality Legislation
WCB Employer Services Strategy
Single Business Number (Tax, Registries, WCB, etc.)
Forms Consolidation (Tax, Registries, WCB, etc.)
Company Act Rewrite
Unclaimed Money Act Rewrite
1998 Streamlining Legislation
1999 Streamlining Legislation

In addition, over 50% of about 130 core Industry Streamlining Proposals have been or are being implemented and 40% are still being pursued. Examples of administrative and regulation amendments that streamline or reduce red tape include:

milk testing monthly instead of twice a month;
highways and Ministry of Forests improvements on Crown land excluded from the Builders Lien Act;
merchant visa program extended to merchants whose business with government is less than 50%;
elimination of duplicate requirements for contractor insurance certificates to Ministry of Transportation and Highways;
Mining Advocate appointed to assist in resolving interagency conflicts related to mining;
clarification of dock cleaning authority;
Financial Institutions Commission accepts electronic access to documents filed in home jurisdiction instead of requiring duplicate filings;
ICBC extended hours of operation for its Vehicle Damage Inquiry Line and launched an Internet service for commercial customers; and,
WCB is reforming its experience rating program, including the forms and the way it communications with employers.

Government Legislative Process Improvements

As a result of the Business Task Force initiative, a simplified streamlining legislation process was established within government to expedite the development of streamlining or red tape reduction legislation, and of legislative amendments that keep the provincial statutes in good repair.

Change in Government Approach to Regulatory Policy

The Business Task Force believes that the breadth of streamlining initiatives and the implementation of its business lens recommendations indicate a change in the government’s approach to regulatory policy issues, and its recognition of the implications of regulatory policy for business.

III. Business Task Force Future: Mandate and Membership

Mandate Renewal

The Business Task Force recommends that government renew the mandate of the Business Task Force so that the work started by the current Business Task Force can be continued, subject to the following recommend changes.

Terms of Reference

The mandate of the Business Task Force has been to find ways to reduce the cost of doing business in British Columbia. It approached that by:

consulting with members of the business community to ask them what the problems are and following up on their suggestions;
encouraging government to undertake Streamlining Projects in key areas; and
sponsoring the development of housekeeping legislation.

This has been a good start. Based on the work of the first year, the Task Force recommends that consideration be given to a somewhat more specific Terms of Reference for a renewed Task Force.

It is recommended that the Terms of Reference continue to refer to finding ways to reduce the cost of doing business in British Columbia as its general purpose, with the following specific elements added:

advising government about which initiatives should be subject to regulatory impact statements based on information provided by government about planned activities; and
advising government about which existing regulatory regimes should be reviewed.

Term

The one year term of the Business Task Force kept the group focused and contributed to the progress made so far. However, on the basis of Business Task Force recommendations as well as the new Regulatory Impact Statement Act and the RIS Policy, which require an ongoing advisory group to help determine which new initiatives should be subject to the regulatory impact statement requirements, some continuity will be required.

Consistent with the Task Force recommendation that policy initiatives be subject to review after a reasonable time to ensure that they continue to be effective, it is recommended that the ongoing advisory body be sunsetted and reviewed after two years.

Name

This Business Task Force has completed its task and the function is changing to a more ongoing responsibility. The Business Lens has been officially renamed the Regulatory Impact Statement to better reflect its broader function. The Business Task Force is focused on regulatory issues.

It is recommended that the name of the ongoing advisory body be changed from Business Task Force. “The Business Task Force on Regulatory Impact” is suggested.

Membership

The Task Force is currently comprised of 16 members broken down as follows:

Government:	4
Labour:	2
Business:	10 (or 9 if the Economic Development Association is considered non-business) of which there are: association staff: 5²; association members: 3³; and other: 2 (accountant, micro business) Big Business – 2 or 3 Small and Medium-sized Enterprises – 5 of which micro – 2 or 3 Neither big nor SME – 2 or 3

The Task Force recommends the following membership:

Government: 2 ministers

Business: 10 comprised of representatives from among the following sectors:

natural resources;
tourism;
trade – retail & wholesale
agriculture;
construction;
manufacturing;
high technology;
film;
financial services;
other services

These should include a balance of association staff and business people, a balance of those representing larger and smaller business and a regional balance. Some sectors may be represented by association staff who provide a cross-sectoral perspective (e.g., the Canadian Federation of Independent Business or the Business Council of British Columbia).

Labour: 2 (no change)

Local Government: 1 representative of the UBCM

Other groups: 1 or 2 representatives from groups such as the Economic Development Association

Total: 16 or 17 Members

There should be sufficient overlap between the new panel and the existing Business Task Force to provide for continuity. The Minister of Finance and Corporate Relations should continue to chair.

The Deputy Minister of Small Business, Tourism and Culture and the Deputy Minister of Finance and Corporate Relations should attend all meetings and provide support for the new Task Force. Other deputy ministers and staff should be invited as resources as required.

Groups and associations should be invited to nominate potential members, with the appointments made by the Minister of Finance and Corporate Relations.

IV. STREAMLING PROJECT UPDATES

Table 1 is a list of the 20 major projects undertaken to focus regulatory reform activity in a number of priority areas identified by the Business Task Force.

Table 1 — Streamlining Projects
1. Business Lens	11. Regulatory Administration Review
2. Builders’ Lien Act	12. Liquor Policy Review
3. Consumption Tax Administration	13. Local Government Streamlining
4. Crown Lands Administration	14. One Stop Shopping
5. Electronic Service Delivery	15. Payment Timeliness Review
6. Employment Standards	16. Plain Language Materials
7. Environmental Issues	17. Self-Regulatory Org. Review
8. Environmental Assessment	18. Unclaimed Money
9. Forestry Administration	19. WCB Administration
10. Highways Development Approvals	20. Food Quality & Food Safety

The government introduced legislation during the Spring 1999 Legislative Session that implements the Business Lens project, aspects of the Liquor Policy Review, the Unclaimed Money project, and the Food Quality and Food Safety Project.

Appendix B provides more detailed information on these projects and their status.

V. INDUSTRY PROPOSALS

There are 132 core proposals that the Business Task Force has been monitoring. These proposals and the approach to selecting them are discussed in the Third Report. The Report and the status of the core proposals are available on the Streamlining Website (www.streamline.gov.bc.ca) or in hard copy from the Ministry of Finance and Corporate Relations Communications Branch (250) 387- 3347.

VI. LEGISLATION

A significant number of suggestions for streamlining legislation have been developed as a result of suggestions made by the business community during Business Task Force consultations, by ministries as a result of ongoing discussions with business or as part of the major streamlining projects.

As of July 7, 1999, the government has introduced the following legislation in the 1999 Spring Session of the Legislative Assembly related to the streamlining initiative:

Bill 57 - Range Amendment Act, 1999
Bill 61 - Consumer Protection Amendment Act, 1999
Bill 63 - Wildlife Amendment Act, 1999
Bill 64 - Securities Amendments Act, 1999
Bill 65 - Labour Statutes Amendment Act, 1999
Bill 66 - Attorney General Statutes Amendment Act, 1999
Bill 68 - Forest Amendment Act, 1999
Bill 69 - Education Statutes Amendment Act, 1999
Bill 71 - Finance and Corporate Relations Statutes Amendment Act, 1999
Bill 72 - Water Amendment Act, 1999
Bill 74 - Miscellaneous Statutes Amendment Act (No.2), 1999
Bill 75 - Residential Tenancy Amendment Act, 1999
Bill 76 - Health Statutes Amendment Act, 1999
Bill 77 - Agri-Food Choice and Quality Act
Bill 80 - Liquor Statutes Amendment Act, 1999
Bill 81 - Regulatory Impact Statement Act
Bill 83 - Food Safety Act
Bill 85 - Company Act
Bill 91 - Unclaimed Property Act
Bill 93 - Land Title Amendment Act, 1999

These bills are available on the Legislative Assembly website (www.legis.gov.bc.ca).

VII. CONCLUSION

The Business Task Force believes that the regulatory environment of British Columbia will continue to be significant factor in the economic prosperity of the province. The Task Force commends the government for its commitment to the streamlining initiative and encourages the government to continue to build on the progress made over the past year.

The accomplishments outlined in this report represent an important beginning. A priority of the Task Force has been to promote better and more accountable regulatory policy decisions. The RISA and its policies and procedures are an important step in that direction and in the reform of the government’s approach to new regulation. Wise enforcement and a critical examination of existing regulatory frameworks and their cumulative effect are also essential. As in other jurisdictions, these kinds of reforms require cultural change and that must be the long term objective. The new Business Task Force on Regulatory Impact will have a critical role to play in this cultural change and in the continued success of the streamlining initiative.

1 See Business Task Force Third Report

2 Canadian Federation of Independent Business, Alliance of Manufactures & Exporters, Business Council of British Columbia, Technology Industries Association, Agriculture Council of British Columbia

3 Economic Development Association, BC Chamber of Commerce, Council of Tourism Associations Business Task Force Final Report Page 1

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